AeroCentury Reports $27.5MM in Net Income in Q3/21
NOV 22, 2021 - 6:42 am
Aircraft lessor AeroCentury reported net income in Q3/21 of $27.5 million compared with a net loss of $4.1 million in Q3/20. The company also recorded $28.7 million in reorganization gains in Q3/21.
In March, AeroCentury and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. On Aug. 31, the U.S. Bankruptcy Court confirmed the company’s plan of reorganization. On Sept. 30, the company completed its Chapter 11 restructuring process and emerged from Chapter 11 bankruptcy. In Q3/21, the company adopted fresh-start reporting adjustments following its emergence from bankruptcy.
“We are very pleased to announce the company’s financial results for the third quarter of 2021, representing the fresh start for the company … both from financial and strategic perspectives,” Yucheng Hu, CEO of AeroCentury, said. “After the completion of the company’s reorganization, we look forward to continuing to enjoy a portion of the growth and development of the company’s legacy aircraft leasing business through our majority stake in the company’s previously wholly-owned subsidiary, JetFleet Holding Corp., but we will also be opportunistic and look for additional growth investments in the future to diversify our revenue streams and potential high growth earnings to our shareholders.”
AeroCentury also reported that revenues and other income decreased by 54% to $1.6 million in Q3/21 from $3.5 million in Q3/20, primarily due to a decrease in operating lease revenue and reduced rent for two assets. In addition, in Q3/21, the company had total operating expenses of $2.7 million as compared with $7 million in Q3/20.
Because AeroCentury’s consolidated financial statements reflect fresh-start reporting adjustments following its emergence from bankruptcy, the company cannot adequately benchmark the operating results of the one-day period ended Sept. 30 against any previous periods. As such, its Q3/21 results are based on the period from July 1 through Sept. 29.
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